McDonald's Marketing Strategies and Techniques

This assignment provides an in-depth analysis of McDonald's marketing function and its interrelation with other functional departments. It highlights the importance of integrated marketing communication and the application of social marketing concepts to encourage voluntary blood donors using theory of planned behavior. The report concludes by emphasizing the need for McDonald's to improvise its services, formulate new plans, and strengthen its marketing department to achieve its objectives.

MARKETING
ESSENTIALS
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Concept of marketing, including current and future trends.........................................................3
2. Overview of different marketing process................................................................................4
3. Roles and Responsibilities of Marketing Manager..................................................................4
4. Marketing influences and interrelates with other functional departments ..............................6
5. Value and Importance of marketing role in McDonald's.........................................................6
6. Importance of effective interrelationship between different Functional Department..............7
TASK 2............................................................................................................................................8
7. Compare ways in which McDonald's applies marketing mix to achieve business objectives
and how dose it differs from other...............................................................................................8
TASK 3. ........................................................................................................................................10
8.Evaluate a basic marketing plan for McDonald's...................................................................10
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................13
..............................................................................................15
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INTRODUCTION
Marketing refers to use of promotional tools and techniques by company to attract more
consumers to avail there products/services. This report discuss about the concept of marketing,
including future and current trends. The key role and responsibilities of marketing manager in
promotion of products. The concept of marketing mix and it application by organisation to
achieve business objectives. It shows the importance of interrelationship of different departments
of organisation with each other. McDonald's is a leading fast food chain which operates through
it outlet all around the world. It was established in year 1940. The company has strong logo and
brand image.
TASK 1
Concept of marketing, including current and future trends
The concept of marketing means that a firm should properly analyse their customer needs
and then make decisions to satisfy them (Babin and et. al, 2015).
The five marketing concepts are:
 Production concept: It means that consumers will buy more products if it's cheaper and
widely available. The organisation would focus more over efficiency of production.
 Product Concept: This concept proposes that consumers will buy products that have
better quality, innovative features and performance.
 Selling Concept: According to this concept, a company should focus on selling their
products. It should engage in aggressive promotions to sell these products.
 Marketing Concept: This concept focuses on the needs, wants of their consumers and
delivers it accordingly.
 Societal Marketing: Organisation should assist the needs, wants of consumer, and
delivers them in a better way that enhances both consumers and society’s well-being
(Brunello, 2013).
Current trends in marketing:
 Use of social media: To promote their products/services organisation is using social
media platform. These online portals help companies' to target large number of
consumers in a cost effective way.
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 Importance of content: This is done to attract more customers in order to avail their
products/services. Company is focusing on establishing good content for their products
(Chikweche, T.Fletcher, R., 2012).
Future trends in marketing:
 Eco-Friendly concept: The shift of organisation to concept of produce goods that are
environment friendly. Companies are trying to focus on sustainable development.
 Transparency: The firm must be transparent in their operations and in dealings with
customers (Gajić, 2012).
2. Overview of different marketing process
The marketing process consists of four elements i.e. Situational Analysis, marketing
strategy, marketing mix decision and implementation and control (Gordon, 2012).
The overview of these process is :
 Situational Analysis: The firm is required to identify their capabilities and needs to
analyse external and internal environment. To achieve better results, companies' uses
various analysis such as 5C's, SWOT and PESTLE analysis.
 Marketing Strategy: After identifying the needs of consumers, a firm develops a
marketing strategy and plan to fulfil the demands of consumers. It includes segmentation
of market as per customers’ needs and wants.
 Marketing Mix: This refers to a set of tools that organisation uses to achieve its
marketing objectives within their target markets. It includes 4P's which are Product,
Promotion, Place and Price.
 Implementation and control: This is a process that ensures achievement of strategic
goals mentioned by company. It refers to the preparation of list in which roles are
assigned for completing specific activities. It state resources required for achieving
objectives (Kafashpoor, Mortazavi and Hasani,2012).
P 1. Explain the key roles and responsibility of the marketing function.
The marketing department of company is responsible for increasing market share,
contributing towards revenue generation and growth of company. The key roles and
responsibility of marketing department is:
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 Market research: This is the key responsibility of marketing department. Analysing and
conducting a research help company to identify the needs and demands of their
prospective consumers.
 Strategies: Role of marketing manager is to formulate strategy for the promotion and
branding of products/services of company. They are responsible to align marketing
strategy with other strategy and objectives of company.
 Product Development: The marketing department of company work along with product
department to developed new products and to improvised their existing products. Further,
it sets price and prepare plans to launch the new product in market.
 Communications: There role is to plan a promotion campaign and develop a
communication material in order to attract customers for availing their products.
3. Roles and Responsibilities of Marketing Manager.(P2)
Various Roles played by marketing manager of McDonald's are as follows:
 Brand Development: The major role of marketing manager is to develop the brand and
logo of company. This helps in creating a better impression in increasing product sales
and market share. Brand development of McDonald's has helped to generate 60% of
revenue.
 Public Relations: The role of marketing manager of company, is to represents
organisation through different initiatives, new products/services. McDonald's has
sponsored football matches and various charitable events for its promotion. Competitive Intelligence: To remain competitive in marketing place, marketing
manager performs various researches and analyse marketing strategies. It analyses
strategies of competitors and their behaviour towards McDonald's policies, and
products/services (Mihart, 2012). Creating value: Value creation is the prime aim of companies. It helps in selling
products/services of business. There are two types of value creation for customers i.e.
desired and perceived value. The former is what customers desires in their
products/services while the latter refers to the benefits that customers believe that they
would receive from products after purchasing them. McDonald's create values through
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their products and attract consumers especially children to their products by offering
suitable gifts and combo deals.
 Compare value: It means refers to comparing the value for customers i.e. Total Customer
Benefits – Total customer Cost. It is also known as Customer Value. This value is higher
when customers gains more benefits in compare to the cost of products/services. It is low
when they get less benefits from the products/services. McDonald's produces standard
quality products and make it available at lower prices. It takes into consideration factors
which help in enhancing their consumers satisfaction.
Responsibilities of Marketing Manager
 Developing marketing strategies and plans for McDonald's.
 Preparation of budget and managing it
 Maintaining a healthy and loyal relationship with customers
 Developing and formulating plans in accordance with needs and demands of consumers.
 Implement guidelines to be followed for promotion of company.
 Ensuring time delivery of products to consumers
 The responsibility of manager is to act as a bridge between top-level authorities and base
line employees of McDonald's.
 To make researches for current trends and demands of consumers and make strategies
accordingly (Pike, 2015).
4. Marketing influences and interrelates with other functional departments
Marketing is an essential part of any organisation. It helps in promoting and providing
goods from manufacturers to consumers. This is a wider concept as it helps firm to analyse
opportunities and needs of consumers to formulate plans accordingly.
The interrelationship between marketing functions and other departments of a firm can be
explained as follows:
 Production/Operation: Marketing department of an organisation works with production
management to make adequate research regarding demands of consumers and future
trends. To make items according to quality and specification mentioned by customers. It
set deadlines for operation department which stretch their capabilities. The production
management would ensure that no defective item should be there and assured health,
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safety of production department. Whereas, a marketing manager would make products to
make it available on time to there target market.
 Finance: The finance department of a firm look out that all activities has been achieved
within the financial capabilities. The marketing manager of company works with finance
department to make adequate budget for meeting the needs of promotion, research and
distribution activities (Riaz and Tanveer, 2012).
 Human Resource: The marketing department of company works with HR. professionals
to create the following:
 Competent Sales Team
 Meet Production Targets
 Support research and develop new products.
5. Value and Importance of marketing role in McDonald's
Marketing plays a key role in the success of every organisation. It is a social term that
means to create a relationship with customers and believes in creating products with
sustainability to achieve consumers’ needs and demands. McDonald's is a multinational fast food
chain that operates its business in more than 100 countries. It captured many emerging markets
of Asia and Europe to expand their business. Thus, marketing plays an essential role in the
growth of McDonald's. The value and importance of marketing management in the success of
McDonald's can be explained as follows: Help in identifying trends: The marketing manager makes research for the current trends
and analyse them to create products according to these trends. They help organisation to
know about them and help to respond to these changes. McDonald's has successfully
analysed the trend of Asian markets and added local cuisines in there menu. Building reputation: The mass marketing of company and strong strategies of
McDonald's help it to achieve huge success and generate large amount of revenue
through it logo. Company makes the highest amount of sales through its logo. Strength Public Relations: Through marketing strategies company can strength it bond
with its target market. McDonald's uses promotional strategies of sponsoring of many
global iconic events and charity functions like Mc Happy Day help company to build a
strong public image.
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 Help in Building Customer Relation: To build a strong and good customer relationship
is important task performe by marketing managers. They help in creating relation through
greater satisfaction and providing value to consumers. This is the reason McDonald's is
still one of the favourite fast food company (Singh, 2012).
6. Importance of effective interrelationship between different Functional Department.
The firm can work effectively when it has sound interrelationship between the different
functional departments. The importance of strong interrelationship is as follows:
 It helps organisation to cope up with the change in the demands and needs of consumers
and to produce accordingly.
 Further, the shorter life cycles of product requires organisation to be adaptive to
environment and make quick response to ongoing changes.
 It helps in building effective communication between different department which is
essential for the organisation. More over it helps in reducing conflicts between various
functional departments.
 This strengthen and increases productivity of firm which is essential for company for its
survival in industry.
 The effective interrelationship between departments help organisation to achieve it set
target/ goals in given time.
 It helps in improvising customer service of company and assures repeat business with
them (MTurnbull and et. al 2013).
TASK 2.
7. Compare ways in which McDonald's applies marketing mix to achieve business objectives and
how dose it differs from other.
Marketing mix of McDonald's : Product: Company develops it menu in accordance to meet the demands and needs of
there consumers. It is one of the leading manufacturers of fast food products. Initially
companies used to sell hamburgers but it expands there menu to cater the needs of
globally diversed consumers. It has included chicken wraps, cheeseburgers, soft drinks,
milkshakes, etc. To meet it business objectives in Asian markets company has diversified
it products and added local dishes to its menu. Also, the firm has established a healthy
menu with salads, fruits and it also tells about the essential nutrients of there products.
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 Price: The firm adopted a psychological pricing strategies so that product of company is
been affordable by consumers. It divides it prices into two factors i.e. brand affordability
(BA) and branded core value (BC V). Further, it offers bundling price that means it offers
bundling products along with meals. This help company to increase it sales and attract
more consumers. Also, it provides discounts, combo deals of menu in order to reach it
targeted lower middle class groups. Promotion: Company uses effective and strong promotional techniques in order to
promote there products. It spends huge some of money and advertise it products through
billboards, newspapers, magazines, T.V. Commercials, etc. McDonald's is engaged in
aggressive promotional strategies. It sponsored various events like FIFA World Cup,
little league, etc. These promotional techniques of company helps it to effectively reach
to there target markets and builds a brand image of company within industry. Place: McDonald's operates it business in more than 100 countries and there outlets are
evenly spread throughout cities creating easy accessibility. Further, McDonald's operate
through different types of restaurants which are Mc Drive, Mc Express, Mc Cafe. It
provides a option of drive in and drive through which make even more convenient for
consumers to avail the products of company. People: Company treats it employees very well. They are encouraged to give their best
services to customer and train it staffs to address their customers in a cheerful manner. It
motivates their employees through performance analysis and reward them with monetary
and non-monetary benefits. Also, it trains their franchise holders to provide same quality
services to there consumers. Process: It has evaluated and established an effective process for methods for packaging
and distribution of there products. Company has supported research to get innovative
process to increase it productivity and provide quicker delivery. It made available for
customers to see it food manufacturing process. Apart from this it has streamlined
distribution system in accordance to it values and culture through out the world.
 Physical Existence: Company has strong presences through it outlets spread evenly all
over the world. It has developed a user friendly website to reach through their target
markets. The physical existence of company made it easier to promote it products and
attract more consumers towards it brand.
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Though McDonald's can improve its operation and increase it productivity in compare to
its competitor Dominoes in a certain way which are:
 The firm should add more healthy items in there menu like it competitor so to attract
health conscious people to avail there products. These opportunities would help firm to
gain back it lost brand image.
 Dominoes provide a quick and steady services to there consumers. This strategy can be
used and firm should speed up it delivery services in outlets so that more customers can
be served in a given time.
 McDonald's should make changes in the wage policies of there employees. It should
provide minimum wages to there employees so that companies is able to improve it
public image and would help it to increase it productivity.
 Company should improves it media relations so that it can build up a positive brand
image and strength it relations with customers.
 The firm should try new plans and strategies to attract more consumers across the world.
 It should try newer options to deliver there products like, home delivery. This would help
it to gain a competitive advantage as the products are available to more number of
consumers.
 McDonald's should change and diversified it menu by serving healthy breakfast all the
day this concept would bring back more customers to outlet.
 The firm should try to bring changes within it outlet interiors which will look delightful
and more customers are been attracted.
TASK 3.
8.Evaluate a basic marketing plan for McDonald's.
Contents:
Objectives.
Segmentation.
Targeting
Positioning.
Marketing mix of McDonald's.
SWOT Analysis.
PESTLE Analysis.
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Marketing Techniques.
Marketing plan for McDonald's :
Objectives:The current aim of company is to introduce breakfast meals in there menu
across the world. McDonald's is introducing this plan to attract consumers from all the segments.
There are some objectives which company wants to achieve.:
 To increase sales by 15% in Europe and other parts of UK.
 Introduce healthier breakfast items.
 All the breakfast items should be available on the websites of company.
 To increase sales leads for young consumers by 20%.
The company wants to achieve it set objectives in next 5 years.
Segmentation: McDonald's has used various segmentation for dividing it customers i.e.
Demographic, Geographic, Behavioural and Psychological Segmentation. It has developed
products to attract customers from all segments and accordingly it has set price for their products
focusing on the income groups and buying habits of consumers.
Targeting: The firm has targeted people of lower income group and those who are aware
of healthy eating habits and want to bring changes in there taste and preferences. It has made
introduced products like salads, fruits and smoothies for there target consumers. Further, it has
developed certain promotional strategies for there products to be reached over target markets.
Positioning: To test it new products and make it available to targeted consumers
company has added in it menu across globe. It has decided to make all the breakfast options
available on the online portals or website of company so that it can be reached to people across
the globe. Company has build up promotional strategies to position it products in market.
Marketing Mix of McDonald's: Product: The breakfast meals should be innovative and different from that of
competitors. It must focus over the quality aspects of the meals and provides better
quality at affordable prices. Further, company should develop a healthy options in
breakfast. Price: The meals should be available at affordable price. The strategy of company must
be formulated in accordance to all target customers. This would help to drive more
satisfaction and gain competitive advantage.
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 Place: Company should make it online portals stronger and it must adopt a system of
home delivery so that customers can make orders through their places. Promotion: It should try to regain it positive brand image. McDonald's must work on to
maintain better public image through strong media relation.
SWOT Analysis:
Strength:
 increase in overseas markets.
 Consistency of food items.
 Occupancy of 40% the US fast food market.
Weakness:
 The poor development of product.
 Decline in revenue and market share.
Opportunities:
 focusing of company in fulfilling social responsibilities.
 Building of new formats like Mc Express, Mc Cafe.
Threats:
 Increasing number of competitors.
 Fluctuations in foreign exchange rates of different countries.
PESTLE Analysis:
Political factors:
 Government change their rules and regulations like they increasing international
business agreements.
 Change in tax polices.
 It also includes people heath policies.
Economic factors:
 . This corporation providing lot of benefits to their economy.
 It helps in providing job opportunities.
Social factors:
 Social factor are also influencing to macro environment this aspect is very
important for wealth and providing so many opportunities to their customers most
low income or medium household prefer this firms food.
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 This social forces increasing healthy lifestyle of peoples as well as increasing
cultural diversity.
Technological factors
 MacDonald also uses new techniques like, use of smart phones, own website,
email messages.
 It has developed self check system.
Environmental factors
 Interest of corporate environmental programme.
 it is very important opportunities for maintain the health environment system.
Legal factors
 Legal factors is referred with external forces of this company they follow legal
nominal wages level in the US.
 The objective of this firm to increasing their sale and increase brand awareness to
their employees.
Marketing Techniques:
McDonald's should build new plans and strategies to promote it products in market. It
should strength it promotional activities and increase it sales promotion by offering discounts,
coupons and other promotional incentives to lure more customers to avail their products.
Company should make deep research about the recent trends in the market and make proper
analyse of the threats and opportunities available to it. Lastly, the firm should build it products
and plans that help it to achieve both companies' objectives as well their consumers needs.
CONCLUSION
The report concludes about how marketing function is interrelates with other functional
department of organisation. It shows the importance of interrelationship of these functions and it
role in achieving overall goals of organisation. The importance and value of marketing tools in
success of McDonald's growth and expansion. Company needs to improvised it services and
formulate new plans to promote their products and build up a brand image. It should strength it
marketing department in order to achieve its objectives.
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REFERENCES
Books and Journals
Babin, B. J. and et. al, 2015. Essentials of marketing research. Nelson Education.
Brunello, A., 2013. The relationship between integrated marketing communication and brand
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Chikweche, T. and Fletcher, R., 2012. Revisiting the marketing mix at the bottom of pyramid
(BOP): from theoretical considerations to practical realities. Journal of Consumer
Marketing. 29(7). pp.507-520.
Gajić, J., 2012. Importance of marketing mix in higher education institutions. Singidunum
journal of applied sciences. 9(1). pp.29-41.
Gordon, R., 2012. Re-thinking and re-tooling the social marketing mix. Australasian Marketing
Journal (AMJ). 20(2). pp.122-126.
Kafashpoor, A., Mortazavi, S. and Hasani, M. S., 2012. Application of social marketing concept
in encouraging voluntary blood donors using theory of planned behavior. Scientific
Journal of Iranian Blood Transfusion Organization. 9(1).
Mihart, C., 2012. Impact of integrated marketing communication on consumer behaviour: effects
on consumer decision–making process. International Journal of Marketing Studies. 4(2).
p.121.
Pike, S., 2015. Destination Marketing: Essentials. Routledge.
Riaz, W. and Tanveer, A., 2012. Marketing mix, not branding. Asian Journal of Business and
Management Sciences. 1(11). pp.43-52.
Singh, M., 2012. Marketing mix of 4P’s for competitive advantage. IOSR Journal of Business
and Management. 3(6). pp.40-45.
Turnbull, P. W. and et. al 2013. Strategies for International Industrial Marketing (RLE
International Business): The Management of Customer Relationships in European
Industrial Markets. Routledge.
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